In today’s briefing:
- Curator’s Cut: Japan Insurers Vs Banks, the State of the Chinese EV Sector and Asian Ports in Focus
- Quiddity Leaderboard Hang Seng Index Sep25: BeOne, TME, and Pop Mart Among Our Top Picks
- Dickson Concept (113 HK): More Minority Teeth Bared As Another Scheme Fails
- Formosa Prosonic: (FOR MK) : Margin of Safety Is Very High – Trades Below Cash
- Pre-IPO 52TOYS Development – The Business Model and the Concerns Behind
- Rather than “Technical Guidance,” What Is Needed Is Thorough Fiduciary Duty to Shareholders
Curator’s Cut: Japan Insurers Vs Banks, the State of the Chinese EV Sector and Asian Ports in Focus
- Welcome to Curator’s Cut, a fortnightly roundup of standout themes from the 1,000+ insights published in the past two weeks on Smartkarma
- In this cut, we compare Japanese insurers versus banks, look at the Chinese EV sector and explore how tariff hikes benefit Asian port operators
- Want to dig deeper? Comment or message with the themes you’d like to see highlighted next
Quiddity Leaderboard Hang Seng Index Sep25: BeOne, TME, and Pop Mart Among Our Top Picks
- The Hang Seng Index is the main benchmark index for Hong Kong stocks. It follows a highly-subjective selection process which makes it difficult to predict index changes.
- In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes during the next review in September 2025.
- The index changes are expected to be confirmed on 22nd August 2025.
Dickson Concept (113 HK): More Minority Teeth Bared As Another Scheme Fails
- Three for three. Three low-balled Hong Kong Offers, by way of Schemes, have now lapsed over the past ten weeks.
- Both Goldlion Holdings (533 HK) and Soundwill Holdings (878 HK) spectacularly failed back in May.
- Now Dickson Concepts Intl (113 HK) has followed suit. But the vote was (much) closer than it should have been.
Formosa Prosonic: (FOR MK) : Margin of Safety Is Very High – Trades Below Cash
- Formosa Prosonic is a very cheap stock. Cash on its Balance Sheet is MYR 1.65 which is way higher than stock price.
- Operating business has been consistently profitable & generated very good ROE & is available for free.
- Stock has been falling as Wistron the largest shareholder has decided to exit its holding as part of strategic overview which we think is a Buying opportunity
Pre-IPO 52TOYS Development – The Business Model and the Concerns Behind
- For IP toy, the ability to provide a variety of categories is valuable,which means brands have access to diverse/creative designs/production based on IP characteristics, highlighting/interpreting the core of each IP.
- Driven by top-tier licensed IPs, 52TOYS achieved solid growth, but its revenue scale/profit margin are inferior to peers. Due to intense competition, 52TOYS’s market share may be further squeezed.
- The post-money valuation after Series C+ Financing is RMB4.27 billion. Based on the analysis, we think valuation of 52TOYS should be lower than Pop Mart (9992 HK), Bloks (325 HK).
Rather than “Technical Guidance,” What Is Needed Is Thorough Fiduciary Duty to Shareholders
- While very few companies allocate cash appropriately, many companies simply announce small-scale share buybacks, resulting in cash being used in a half-hearted manner for both growth and shareholder returns.
- The problem is that many managers lack awareness of their fiduciary responsibility to make sincere decisions on cash allocation based on the idea that free cash flow belongs to shareholders.
- Even for listed companies, the time has come to discuss the role of managers who are unable to thoroughly fulfill their fiduciary duties to shareholders.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
